The Gujarat Urban Cooperative Banks Federation (GUCBF) has put up a petition in the High Court regarding a circular set by Reserve Bank of India whereby all cooperative banks were asked to write off their losses for the fiscal last ended.

The GUCBF is unhappy by the circular because they feel writing off their losses would affect their net worth by a large amount.

The hearing for the petition has been set for June 21, 2011.

The federation says that if the circular gets implemented then the net worth of some of these banks would get completely wiped out.

Also, they say that working of some of these banks would also become jittery if the circular comes into effect.